How to Buy Shares on the Malawi Stock Exchange

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To buy shares on the Malawi stock exchange is ideal for you if interested in achieving long-term financial benefits. If a person buys shares in a company he/she becomes part of the shareholders of that particular company. And he/she is involved in certain decisions about the business future and gets a share of from the company’s profits.

Individuals or companies with various backgrounds can buy shares on the Malawi stock exchange. The minimum shares a person or institution can buy are 1OO equivalent to K1000. The stock is open to both Malawians as well as foreign investors.

The Malawi stock exchange was opened for business on 11 November 1996 and the first company to sell shares to Malawians was the National Insurance Company. The procedures to buy shares on the Malawi stock exchange are outlined below.

Finding a Stockbroker

The first step when a person wants to buy shares on the Malawi stock exchange is to identify a broker. A broker is a licensed film that buys and sells securities on behalf of investors. It acts as a middleman between the buyer and seller of the stocks. The broker gives professional advice on the best investment options. Stockbrokers charges commission for their services.

Making the Right Investment Decision

The interested investor should make a decision whether to invest in a short term or long term capital appreciation. With the help of the broker, the investor should be able to decide suitable investment option on the stock market. Prices of shares on the Malawi stock exchange are determined by forces of demand and supply.

Buying and Selling securities

The next thing is to decide at what price to buy the shares on the Malawi stock exchange. Knowing what price to buy will enable the buyer to determine how many stocks to buy according to the size of the available capital. Shares can be bought for as low as K1000. However, for a person to make reasonable profits, in the long run, they need to buy a considerable amount of shares.

Saving and Monitoring

Buying stocks is a way of serving funds for future use. Making a regular investment in buying securities helps to accumulate wealth from the profits being made. After successfully buying the shares the investor starts to monitor the performance of the stock market. Regular updates on the Malawi stock exchange are found on the exchange website and in newspapers.

Advantages of buying stock securities

Investing in stocks has several benefits as well as challenges.

Investors’ benefit from stock shares by earning dividends when the company is making profits. Part of the company’s net profit is distributed to shareholders in form of dividends.

Another advantage of investing in the stock market is that the investors’ capital grows with time. As time goes by the price of shares also tend to increase.

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About The Author

Chimwemwe Nuka is a professional Teacher, Entrepreneur, and passionate blogger. The purpose of this blog is to provide informative and educative tutorials on Education, Technology, and Business to the reader. And also to help people around the global to easily find some information about Malawi.

9 Comments

Very educative and informative presentation, considering that this type of investment is so closed, and for quite so longtime it has always been the few top brass business gurus only heard participating in the stock exchange market in Malawi.
— Dr Mahatta

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